If a Fixed Asset, Such as a Computer, Were Purchased

question 47

Multiple Choice

If a fixed asset, such as a computer, were purchased on January 1 for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is

• A) Accumulated Depreciation Depreciation Expense
• 1,200
• 1,200
• B) Depreciation Expense Accumulated Depreciation
• 1,200
• 1,200
• C) Accumulated Depreciation Depreciation Expense
• 100
• 100
• D) Depreciation Expense Accumulated Depreciation
• 100
• 100

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Definitions:

Technological Advance

(1) An improvement in the quality of existing products, the invention of entirely new products, or the creation of new or better ways of producing or distributing products. (2) Any improvement in the methods by which resources are combined such that the same quantity of inputs can be made to yield a combination of outputs that is preferred to any combination of outputs that was previously possible.

Distributing

The process of making goods or services available to consumers, often through various channels.

Economists' Models

Simplified representations of the real world used by economists to predict economic outcomes and explore economic theories.

Technological Advance

The process of developing and applying new technologies and innovations to improve productivity, efficiency, and offerings in various sectors.